The new law of 1887 added a number of other cities to the list, with regard to reserves which New York had held up to that time. The amendment, however, left money free to seek its natural channels and reservoirs, assuming that the drift of the current had changed since the passage of the original act. But experience since has shown that trade requirements bring a large proportion of the reserves to New York, and so the new legislation has wrought comparatively little change. The tendency to withdraw funds from New York under the amended law has been checked by the fact that as soon as any city takes on its new dignity of a central reserve point, it can no longer keep a portion of its reserve in New York, but must keep its full twenty-five per cent. reserve in its own vaults idle. Chicago and St. Louis have become full central reserve cities like New York, and, as higher interest rates rule in these cities than in New York, it is natural that many accounts should be transferred from the latter city; and this has happened, as is demonstrated by Chicago bank returns. The drift of currency from New York last fall for the purpose of moving the crops, demonstrates that, while the western banks hold more money for current wants, New York must still be drawn upon for the large sums needed to move grain and cotton harvests. The frequency of paragraphs in the daily papers announcing the departure of another cashier for Canada demonstrates that there is something loose in the methods of banking institutions. The president of the bank does not give sufficient attention to the actual transaction of business. He is usually too familiar and easy-going with his cashier and other important officials. It is seldom that he emerges from his parlor to go behind the counter and see what is actually going on. As for the so-called examinations made from time to time by directors, they are in ninety-nine cases out of every hundred simply farcical. The president of the bank tells the cashier some fine morning: “Get things straightened up now, Jimmy, the directors are coming to-morrow, and we want everything in good shape.” The advent of the directors being thus heralded, everything presents a fair appearance on the occasion of their visit. They chat and chaff each other, glance casually over the statements presented by the president, and then adjourn to indulge in a luxurious luncheon on the floor above. So ends their examination.